Fin min amends FEMA rules to allow 100% FDI in insurance cos, intermediaries
This story was originally published at 18:34 IST on 3 May 2026
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NEW DELHI – The government on Saturday paved the way for 100% foreign direct investment in insurance companies and intermediaries, including brokers and corporate agents, by notifying changes to the foreign exchange management rules. However, the foreign direct investment limit in Life Insurance Corp. of India has been kept at 20%, the notification said.
According to the Department of Economic Affairs notification, 100% foreign direct investment will also be allowed in insurance consultants, third-party administrators, surveyors and loss assessors, managing general agents, and insurance repositories. Foreign investment in LIC will be subject to compliance with the provisions of the Life Insurance Corporation Act, it said.
The notification said that FDI in an Indian insurance company is subject to the condition that at least one among the chairperson of the board, the managing director, or the chief executive officer be a resident Indian citizen. These companies will also have to comply with the norms prescribed under the Indian Insurance Companies (Foreign Investment) Rules, 2015 and the applicable rules notified by the Department of Financial Services and Insurance Regulatory and Development Authority of India.
Enabling foreign direct investment to 100% from 74% in the insurance sector, Parliament had passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill in December. Thereafter, the Ministry of Commerce and Industry notified 100% in the sector in February.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, aimed to revamp India's insurance framework with a host of changes to The Insurance Act, 1938, The Life Insurance Corporation Act, 1956, and The Insurance Regulatory and Development Authority of India Act, 1999, to modernise the sector, widen and deepen coverage, and improve regulatory supervision. End
Reported by Sagar Sen
Edited by Saji George Titus
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